Public Finance-Theory of Public Debt Management (IEcoS (Economic Services) Economics Paper-3): Questions 1 - 6 of 6

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Question number: 1

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Write a short note on Debt trap.

Explanation

Debt trap represents a situation without borrowing afresh or without rescheduling of the repayments obligations, the total indebtedness of the debtor country keep growing or at least it does not decrease.

  • A debt trap is a situation in which a borrower is led into a cycle of re-borrowing, or rolling over, their loan payments because they are u

… (64 more words) …

Question number: 2

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Distinguish between Internal and External Public Debt. In this context, explain the debate on burden of Public Debt.

Explanation

Internal debts refer to public loans raised within the country from its citizen or banks or other financial institutions.

  • External debt, on the other hand, refers to the obligations of a country to foreign government or foreign nationals or international financial institutions.

  • In case of internal debt, the resources remain within the cou

… (205 more words) …

Question number: 3

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

Write a short note on Public Choice theory.

Explanation

Public choice theory was developed in USA during the past two or three decades. This approach is associated with the economists like A. Downs, J. M. Buchanan and G. Tullock and others.

  • Public choice is concerned with the application of economics with that of political science. The growth of public sector has been an important objective of pub

… (186 more words) …

Question number: 4

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Write a short note on Debt trap.

Explanation

Debt trap represents a situation without borrowing afresh or without rescheduling of the repayments obligations, the total indebtedness of the debtor country keep growing or at least it does not decrease.

  • A debt trap is a situation in which a borrower is led into a cycle of re-borrowing, or rolling over, their loan payments because they are u

… (64 more words) …

Question number: 5

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

“The burden of present public debt is shifted to future generations. ” Examine this statement.

Explanation

A very important question which has created controversy in the recent years is whether the public debt imposes burden on the future generation.

  • The traditional argument is that burden of public debt is shifted to the future generation.

  • The future generation pays the interest and the principal.

  • It further states that taxes are used to

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Question number: 6

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

Write a short note on New Orthodoxy of public debt.

Explanation

James M. Buchanan in his Public Principle of Public Debt, he holds the view that the debt operations result in the shifting of burden from present to future generations.

  • He challenged the validity of Pigou’s thesis on the ground that the concept of burden should be interpreted in terms of individual attitudes towards their economic welfare an

… (240 more words) …

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